v3.26.1
Fair value measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair value measurements
10. Fair value measurements
Recurring fair value measurements
The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis. The carrying amounts of certain financial instruments, including cash, accounts receivable, prepaid expenses and other current assets, and accounts payable and accrued expenses approximate their fair values due to their short-term nature.
Table 10.1. Fair Value Hierarchy
(in thousands)March 31, 2026December 31, 2025
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Assets
Cash equivalents(1)
$67,596,121 $— $— $67,483,506 $— $— 
Digital assets84,217 — — 86,515 — — 
Digital financial assets
1,248 — — 542 — — 
Investments - derivatives and embedded derivatives(2)(3)
— 622 — — 1,372 — 
Accounts receivable, net - embedded derivatives(4)
— 19,174 — — 19,942 — 
Total assets$67,681,586 $19,796 $— $67,570,563 $21,314 $— 
Liabilities
Convertible debt, net of debt discount$— $— $— $— $— $36,821 
Total liabilities$— $— $— $— $— $36,821 
(1) Included $66.5 billion and $66.3 billion of Circle Reserve Fund as of March 31, 2026 and December 31, 2025, respectively, and $10.1 million and nil of U.S. Treasury securities as of March 31, 2026 and December 31, 2025, respectively.
(2) The fair value measurement is based on the quoted market price of the underlying digital asset.
(3) Excluded the host contract balance of $1.4 million and $1.2 million as of March 31, 2026 and December 31, 2025, respectively.
(4) Excluded the host contract balance of $4.0 million as of March 31, 2026 and December 31, 2025 .
During the year ended December 31, 2025, $4.6 million of digital assets related to blockchain rewards revenue which were classified as Level 3 within the fair value hierarchy due to the absence of quoted market prices, inherent lack of liquidity, and reliance on unobservable inputs, were transferred from Level 3 to Level 1 when the digital assets were listed on centralized exchanges and quoted prices in active markets became available.
Warrant liability
The Company had issued warrants convertible into Series E preferred stock at a price of $16.23 per share. The warrants were classified as a non-current liability and were fair valued using a probability weighted model based on the fair value of the Company’s common stock at the balance sheet date. The Company revalued the warrants at each reporting period and recorded the change in fair value in the unaudited Condensed Consolidated Statements of Operations. On February 20, 2025, the Company issued an aggregate of 45 thousand shares of Series E preferred stock to the warrant holders upon the cashless exercise of those warrants which were subsequently converted one-for-one to Class A common stock upon completion of the IPO. The changes in carrying value of warrant liability is reflected in the following table (in thousands):
Table 10.2. Changes in Carrying Value of Warrant Liability
Balance as of December 31, 2024$1,591 
Warrants exercised
(1,591)
Balance as of March 31, 2025$— 
Convertible debt, net of debt discount
On March 1, 2019, the Company issued a convertible note in connection with an acquisition. The note had an original par value of $24.0 million, a 2.9% interest rate, and matured on March 1, 2026. The note was convertible into Series E preferred stock prior to the IPO, and is convertible into Class A common stock after the IPO. In October 2025, certain holders of the Company’s convertible notes converted their principal and accrued interest balance of $11.0 million into approximately 675 thousand shares of Class A common stock at a conversion rate of $16.23 per share. In January 2026, the remaining holders of the Company’s convertible notes converted their principal and accrued interest balance of $7.5 million into approximately 465 thousand shares of Class A common stock at a conversion rate of $16.23 per share. The fair value of the notes converted in January 2026 was approximately $39.4 million, substantially all of which was recorded to additional paid-in capital upon conversion. The Company elected the fair value option for recording this note. We measured the fair value of our convertible debt using the probability weighted “as converted” model. The change in fair value of the note is recorded in Other income (expense), net in the unaudited Condensed Consolidated Statements of Operations. The changes in carrying value of convertible debt, net of debt discount are reflected in the following tables (in thousands):
Table 10.3. Changes in Carrying Value of Convertible Debt
Balance as of December 31, 2025$36,821 
Net discount on convertible notes — 
Capitalized interest — 
Fair value adjustment 2,558 
Fair value adjustment  –  credit risk — 
Conversion of convertible notes
(39,379)
Balance as of March 31, 2026$— 
Balance as of December 31, 2024$40,717 
Net discount on convertible notes 206 
Capitalized interest 334 
Fair value adjustment (3,934)
Fair value adjustment  –  credit risk 91 
Balance as of March 31, 2025$37,414 
The following significant unobservable inputs were used in the valuation:
Table 10.4. Significant Unobservable Inputs
March 31, 2026December 31, 2025
Discount rate — %8.0 %
Volatility — %44.8 %
Risk-free rate — %3.7 %
Nonrecurring fair value measurements
Non-financial assets and investments accounted for under the measurement alternative are measured at fair value on a nonrecurring basis. Certain investments accounted for under the measurement alternative were impaired or adjusted for observable price changes in orderly transactions involving the same or similar investment. Refer to Note 8 for further details. These fair value measurements are based on Level 3 inputs, predominantly projected cash flows from the underlying investments and an applicable discount rate used in an income approach.